Question:What is a Real Estate Auction?
Answer: A real estate auction is method of selling real estate that utilizes the auction method of marketing, and competitive bidding. A real estate auction may include:
- an open outcry auction where the auctioneer asks for bids verbally (the type of auction most people think of when they think of an auction)
- on-line bidding, which can include:
- pre-bidding (bidding before an open outcry auction, where the pre-bids are entered in the open outcry auction) and
- real-time/simulcast bidding, that is (Internet bidding) where the Internet bidders compete with those at the open outcry auction
- sealed bids or
- a combination of the above.
Auctions generally include an intense, accelerated real estate marketing process. Please note that I have not defined a real estate auction as the sale of foreclosed property. While a real estate auction may be held to sell foreclosed property, many auctions are held to sell property that is completely paid off.
Question: Why would someone want to auction their home or real estate, that is, what are the benefits of a real estate auction?
Answer There are many benefits to conducting a real estate auction including:
Auction Benefits to the Seller:
- Buyer pays the commission, most real estate auctioneer charge a buyer’s premium, this means that there is no commission deducted from the sale price.
- The Seller sets the terms of the auction including, date, time, place, deposit, closing period, bidding requirements, method of bidding, etc.
- Buyers must comply with the sellers terms and must come prepared to buy
- Attracting bidders from all over the country not just local buyers by using Internet bidding
- Quick turn-around (remember time = money) this reduces long-term carrying costs, including taxes, home devaluation, & maintenance
- Assurance that property will be sold at true market value. A properly advertised auction is the surest way to determine true market value
- Exposes your real property to a large number of pre-qualified prospects (most real estate auctions require a cash deal within one month of the auction in the auction terms)
- Accelerates the sale of the property (the vast majority of auctions are conducted in approximately one month with an additional month to close)
- Creates competition among buyers/bidders—auction price can greatly exceed the price of a negotiated sale, this is why the most valuable property on Earth is generally sold at an auction
- Requires all potential buyers/bidders to pre-qualify for financing, or have the cash available to pay
- The seller sets the date exact date and time the property will sell
- Eliminates numerous and unscheduled showings by forcing bidders/buyer to attend a due diligence inspection
- Takes the seller out of the negotiation process by leaving all negotiation to the auctioneer
- Being able to offer the real property with mulit-parcel (also know as multi-par) bidding allowing the auctioneer to force bidders who want to purchase the entire property to compete against bidders who only want a portion of the property (pasture buyers compete for pasture, woodland buyers compete for woodlands, etc.)
- Ensures an aggressive marketing program that increases interest and visibility, this plan is tailored to the seller’s needs and is tied to the value of the real property. It may included postcards, brochures, an email campaign, radio, TV, and Internet advertising (which can include a special web page, Google Adwords, Facebook boosted posts, Instagram, Tumblr, Linkedin, CraigsList, Twitter, and other social media posts.
Auction benefits to the buyer:
- Avoiding a long and often drawn-out negotiation process
- Purchased at real property at fair market value through competitive bidding
- Knowing exactly what the seller is willing to accept and knowing that they are committed to sell
- Being able to buy multiple properties at one time in a mulit-property auction. Many properties are often offered at once at the auction.
- Bid on property all over the country from the comfort of their home
- Determining the purchase price (and often the location of the closing)
- Auctions can often greatly reduce time required to purchase property
- Buyers compete on a level playing field and must abide by the same terms as all other buyers
- Buyers receive comprehensive information on property via due diligence packet
Whether you are selling Commercial Real Estate, Residential Real Estate, Land, Farms, Business Real Estate, Waterfront, Oceanside, Riverfront or Recreational Property in Missouri or Nationwide, we can help. We are MO. real estate experts.
Accelerated Marketing = Auction Marketing
Our lead auctioneer has earned the National Auctioneers Association’s (NAA) Accredited of Real Estate (AARE) designation placing him in the top 1% of all auctioneers in the USA. Two of our auctioneers are graduates of the Certified Auctioneers Institute (CAI) which a joint program of the NAA and the Indiana University Keller School of Business. We use an accelerated marketing program including the NAA MLS, Facebook (where our group Real Auctions Real Auctioneers consistently ranks first when you search for auction, auctions, or auctioneers), as well as a wide variety of other Internet platforms, as well as traditional marketing methods (signs, print, mailings) to let people know when we have homes for sale. We spell out these platforms and exactly how we use them in our free marketing proposals.
St. Louis Homes for Sale
You can see our current St Louis homes for sale by clicking here. We have formed stigmatic partnership with other CAI auctioneers all over the USA to cross market your property. We CAI auctioneer co-o can expose your home to buyers from everywhere. This partnership allows us to place your farm with brochures with similar farms, or your recreational property with other recreational properties. These properties are placed in collections of similar properties we call fronts. We offer fronts for residential farms, recreational, water front, and timber properties. These fronts allow us to expose your property to bidders from the East cost, Northern Midwest, West, and the South. Our co-op is adding new auctioneers by the day and will soon expose your property to bidders from the West Cost as well. We would love to hear from you. Please use the form below to get in contact with us to get your free, no obligation marketing proposal.